ABSTRACT
This chapter presents the framework with respect to developments within urban economic geography. The chapter aims to extend the production-based model by examining a number of issues that relate to the city. It presents a method for determining intra-urban locations, land rents, profits and prices for a set of producers. It explores Sraffa's theory of joint production, the model is extended to include durable capital called as the urban built environment. The chapter discusses rents, depreciation and both the technical and the economic lifetime of buildings. Finally, the extended model is linked to retail and service employment using as a framework the Garin-Lowry model. It also discusses questions of commuting, housing, wages and social conflict such as inter- and intra-class conflicts. It argues that the model is robust in the face of the complications of the built environment, thereby also indicating the robustness of the more general analytical political economic framework on which it is constructed.
